BOSTON ( TheStreet) -- Master limited partnerships, or MLPs, are required to pay hefty quarterly distributions to shareholders in exchange for avoidance of corporate income taxes. That's a boon to investors surrounded by skimpy dividends and bond yields.MLPs are typically involved in the oil and gas business, specifically exploration, storage and transportation. MLPs offer some of the highest yields in the stock market, but their distributions are taxed differently than dividends. Often, the majority of quarterly payouts are tax-deferred, making MLPs even more attractive income investments. MLP investors receive a K-1 form annually, indicating the tax treatment of the previous four payouts.
10 Energy Stocks with Yields Up to 11%
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.